Trading without a defined system

I wanted to hear some feedback from other members. I do not have a trading system in which every trade is defined by certain perimeters. I try to keep Forex simple. I tend to trade resistances and supports and go with the trend. I have done extremely well the past week. Should I design a trading system?

Sounds like you’ve already got one, if it’s working out well for you. Even with very simple systems, though, unclear situations can come up. It might be worthwhile to keep a trading log and maybe a copy of your simple trading rules handy.

I agree with genghis. You do have a system.

Don’t assume that because maybe you can’t quantify the rules in to something automated it means that you don’t have a system. A system is, at its core, nothing more than the process by which you make trading decisions.

Now, if you don’t follow a consistent process in your trading, then you could say you have no system. That would be a problem.

Good comments, all. It�s interesting to hear the different approaches to trading � which is why I initially came to the forums. On one side, there are a few �intuitive� traders who have not codified their understanding of market action by creating a written system. On the other side of the curve, are �rocket scientists� who apply fractal geometry and game theory to market action in their �quest for alpha�. As rhodytrader suggested, they are just a set of decision making guidelines, no matter how simple or complicated you make them. Simple is good.

Journals are a good idea, too. Question: Do you spend more time reviewing your “winners” or your “losers”?

Neither. I review my overall results and evaluate the effectiveness of my strategy, then consider whether any changes should be made.

I also try to keep my trading simple with simple indicators I have been using for a very long time. I spend much more time reviewing my losing trades so I can figure out which of my rules I broke. I use to study my winning trades both demo and live but I realized I could probably learn more from my losing trades. On a different note ,I have been to other forums and I must say this is the most professional and informative one I have seen in awhile. Good job guys/gals. topcat